The accompanying diagram shows the demand, marginal revenue, and marginal cost of a monopolist
a. Determine the profit-maximizing output and price. Explain. Just don't state the answer
b. What price and output would prevail if this firm's product were sold by price-taking in a perfectly competitive market?Explain. Just don't state the answer
c. What conclusion can draw between a firm operating as a competitor and monopolist in terms of
i) Output produced
ii) Price charge
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Price($)
120
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MC
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110
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100
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90
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80
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70
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60
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50
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40
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30
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20
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10
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D
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0
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MR
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0
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1
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2
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3
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4
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5
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6
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7
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8
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9
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10 Quantity
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Question 7
The supply curve of a single firm under perfect competition is that portion of the MC curve above the minimum point of the AVC curve. How about the supply curve of the monopolist? Does the monopolist have a supply curve? Discuss